The Czech National Bank (CNB) is considering including Bitcoin in its foreign exchange reserve strategy, according to Governor Aleš Michl.

While the bank currently prioritizes traditional assets such as gold, stocks, and bonds, Michl has expressed interest in Bitcoin as a diversification tool.

He noted that although there are no immediate plans to acquire Bitcoin, the asset is on his radar, reflecting a growing trend among central banks to consider cryptocurrencies as part of their reserve strategies.

Michl acknowledged the impressive performance of Bitcoin, which has outpaced gold's increase over the past year.

However, he emphasized that the CNB's current focus remains on gold, with plans to double its holdings over the next three and a half years.

The governor mentioned that while he has contemplated purchasing a small amount of Bitcoin, the consensus among the bank's board members leans towards maintaining a traditional asset allocation for the time being.

The interest in Bitcoin is not limited to the Czech Republic, as several nations are actively exploring the establishment of national Bitcoin reserves.

In addition, the Czech Republic is taking steps to create a more favorable environment for cryptocurrency investment by exempting capital gains tax on Bitcoin and other crypto assets held for more than three years.

This legislative change aligns with European Union regulatory frameworks and aims to encourage greater participation in the crypto market.

The ongoing discussions within the CNB and the legislative advancements in the Czech Republic signal a willingness to explore new avenues for economic growth while maintaining a focus on stability and security.